What Are the Benefits of Opening a Business in Kansas?

Are you looking to open or expand your business in an area that offers low operating costs, a central logistical location and specialized tax incentives for businesses of all sizes?

In Western Kansas, you’ll find over 55 counties that each offer special economic development loan funds as well as other incentives and training programs.

Western Kansas Rural Economic Development Alliance is your one-stop-shop, offering a wealth of information and resources to help your business get off the ground or grow.

Our experienced team is ready to help you to make informed decisions that will reduce stress and bring stability to your business because we care about promoting opportunity and growth in Western Kansas.

Economic Development Incentives in Kansas 

The friendly business climate in Kansas is just one of the variables that sets us apart.

Combined with our competitive tax environment, available workforce, and strategic, midwest location, Kansas has attracted major corporations like Kubota, General Motors, ServiceMaster, and Merck Animal Health as well as many small businesses, which employ half of our state’s private workforce.

Regardless of size, opening a business in Kansas means you can take advantage of multiple economic development incentives, such as: 

High Performance Incentive Program (HPIP) 

The Kansas Secretary of Commerce’s High Performance Incentive Program provides tax incentives to employers that pay above-average wages and have a strong commitment to skills development for their workers. Potential benefits include: 

• A 10 percent income tax credit for eligible capital investment that exceeds $50,000 at a company’s facility
• A sales tax exemption 
• A training tax credit of up to $50,000
• Priority consideration for access to other business assistance programs

Promoting Employment Across Kansas (PEAK)

Companies may retain or be refunded 95% of the payroll withholding tax of qualified employees for new jobs created in Kansas if approved by the Kansas Secretary of Commerce.

Property Tax Abatement

Property tax abatements are available to businesses that purchase or expand property for the purpose of:

• Manufacturing articles of commerce
• Conducting research and development; or
• Storing goods or commodities which are sold or traded in interstate commerce may qualify for property tax abatement with proper approval of the city or county governing body and with final approval from the State Board of Tax Appeals

Micro Loans

Micro-loans of up to $50,000 from the Kansas Development Finance Authority are available to counties to establish a revolving loan program to micro-enterprises consisting of five or fewer employees.

Start-up Kansas

NetWork Kansas’ StartUp Kansas program provides gap financing to help entrepreneurs start or grow a business in Kansas, matching other public sources of capital and providing up to $45,000 per project.

Funds are flexible and can be used for a variety of business purposes, including:

• Equipment
• Inventory
• Working capital

How to Start a Business in Kansas

While a significant part of the manufacturing sector supports agriculture and oil and gas, many companies recognize the benefit of our central location, low manufacturing cost, and superb labor force.

The recent expansion of dairy farms and telecommunications businesses demonstrates how companies can benefit from our low input costs.

And whether a large corporation or a small business, locating here means you also enjoy the added benefit of a loyal customer base and less competition, lower overhead costs, and a much lower cost of living as compared to metropolitan areas.

Are you curious about how to start a business in Kansas? We're excited to talk with anyone who may be interested in this wonderful place we call home!

Let’s start the conversation. Contact us today.